Whalesbook
Boosting iOS Growth with AI
Integrating MobileAction's AI-driven app analytics and Apple advertising expertise into its offerings is a strategic move by InMobi. It responds to significant changes in the mobile advertising world. With stricter privacy controls on iOS, delivering ad campaigns accurately at scale is crucial. This acquisition moves InMobi beyond just providing ad space; it offers advanced tools for analyzing and improving app performance, especially when data is limited.
Addressing Apple's Privacy Shift
InMobi's purchase of MobileAction directly tackles the challenges created by Apple's App Tracking Transparency (ATT) rules. Launched in 2021, ATT limited how apps could access device identifiers, pushing companies away from third-party data to using their own data and AI insights. MobileAction, which focuses on Apple Ads and App Store Optimization (ASO), helps InMobi assist brands in managing these complexities. This can improve organic app growth and AI-driven user acquisition on iOS. Rohit Dosi, InMobi's VP and General Manager, noted the need for partners offering both scale and precision in this changing environment. The deal also enhances InMobi's existing services, combining its Glance consumer platform with stronger advertising tools.
Ad Tech Market Dynamics
InMobi is a global technology firm that has received substantial funding, including over $400 million from SoftBank, valuing it at $2 billion. It operates in a highly competitive ad tech and app analytics market. Major players like Google and Meta provide extensive tools for app store optimization and advertising, making specialized capabilities essential. The app analytics market is expected to grow significantly, with an estimated compound annual growth rate (CAGR) of 23.32% from 2025 to 2035, potentially reaching $20.35 billion by 2032. By integrating MobileAction's platform, which holds data on over 90 million creatives, 6 million keywords, and 5 million apps, InMobi can strengthen its market position. MobileAction has a proven history, including a key partnership with Skai, establishing it as a leading platform for Apple Search Ads.
Industry Trends and InMobi's Strategy
The mobile advertising industry is increasingly reliant on AI and built-in platform intelligence, a shift sped up by privacy rules. InMobi's data shows that ad spending on iOS, after an initial drop following ATT, has recovered, confirming the segment's continued importance. InMobi has a history of strategic acquisitions, having previously bought companies like Sprout and Aerserv. Its subsidiary, Glance, has also experienced notable growth. The broader ad tech sector has seen rising deal values and a strong emphasis on AI in 2025-2026, with technology deals leading the way. This acquisition fits into a larger trend of industry consolidation, driven by the need for advanced analytics and AI to succeed in digital advertising.
Potential Risks to Consider
While the acquisition appears strategically sound, several risks exist. Integrating MobileAction into InMobi Group, even as a separate platform, could face challenges in aligning company cultures, technologies, and operations. InMobi's stronger focus on the iOS ecosystem, while leveraging MobileAction's strengths, also makes it more dependent on Apple's future platform decisions and policies. The ad tech sector is highly competitive, with major players like Google and Meta holding substantial market share and resources, which continually challenges InMobi's position. Additionally, growing scrutiny over data privacy and AI ethics, even where MobileAction emphasizes privacy principles, requires constant attention to avoid regulatory issues. InMobi has faced financial difficulties before, including losses and restructuring between 2015-2016, illustrating the ad tech sector's inherent instability.
InMobi's Future Plans
InMobi intends to heavily invest in MobileAction's product development and worldwide expansion, targeting key markets like the US, APAC, and MENA. This acquisition enhances InMobi Advertising's ability to help brands find new app users through both organic discovery and AI-optimized campaigns. InMobi is reportedly planning for an IPO around fiscal year 2027. As the company continues to combine various business units, such as Glance, this acquisition shows its dedication to improving its core advertising technology with specialized, AI-driven solutions for today's mobile landscape.